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And as outbound travel is restricted by the coronavirus, consumers are less sensitive to price and more willing to pay during domestic trips, which are good for high-end tourism, he added.

Analysts attributed the PPI drop to a persistent slump in global commodity prices as well as a sluggish recovery in demand. The latter factor could intensify as the downward pressure on exports caused by the COVID-19 pandemic is on the rise.

An unnamed MLR official said the move was in line with the central authorities' comments made at the Central Economic Work Conference in December that "houses are built to be inhabited, not for speculation."

Anhui province plans to invest 1.3 trillion yuan (4 billion) on 6,878 projects as a major measure to stabilize the economy, according to a press conference on Friday.

Analysts said government support for entrepreneurship and innovation has provided a major boost for tech firms and startups and allowed them to survive and thrive amid downward pressures on the broader economy.